The Magazine of Corporate Responsibility

Tag Archive for ‘Shareholders’

Dell Negotiating to Settle SEC Charges Regarding Intel

Dell Inc. said the company and its Chairman and CEO, Michael Dell, are in negotiations with the Securities and Exchange Commission to settle charges related to past dealings with chip-maker Intel. The company revised its earnings to include a $100 million liability to cover the cost of an anticipated settlement by the company with the SEC.

The “Dark Side” of Independent Board Members

Independent directors have strong incentives to quit a company’s board precisely when they are most needed, creating an economically significant “dark side” affecting future performance, according to an academic study. The study found that in the wake of surprise outside director departures firms have worse stock and accounting performance as well as a greater likelihood of earnings restatements and shareholder lawsuits.

Conscious Capitalism: New Models for 21st Century Business

Columnist Gael O’Brien takes a look at a new organization and a group of business leaders who believe that a company can be profitable while also safeguarding trust, reputation, and credibility with stakeholders. One CEO poses the question: “Is it possible to create an enterprise where everybody wins?”

Senate Bill Changes Rules for Boards, Executive Pay

The bill, which passed the Senate by a vote of 59-39, requires directors to win by majority vote in uncontested elections, gives the SEC authority to grant shareholders proxy access to nominate directors and gives shareholders the right to a nonbinding vote on executive pay. The measure must be reconciled with a House bill.

Proxy Advisors Find Themselves in the Spotlight

Proxy advisory services play a key role because institutional holders turn to them for advice when voting billions of shares at annual meetings. Questions are now being raised about the influence of the services and whether more formal oversight is needed. As a result, proxy advisory services may be about to start receiving their own report cards for a change.

Obama Presses for Shareholder Reforms

In a speech, the President reviewed causes of the recent financial crisis, pointedly declaring that some on Wall Street “forgot that behind every dollar traded or leveraged, there is family looking to buy a house, pay for an education, open a business, or save for retirement.” He also declared: “A free market was never meant to be a free license to take whatever you can get, however you can get it.”

Investors Introduce Record Number of Climate Change Resolutions

The resolutions, up 40% from last year, have been presented to some of the nation’s largest coal companies, electric power and oil producers, home builders, big box retailers, financial institutions and other businesses thought to be not adequately disclosing and managing potential climate-related business impacts.